Explaining Southern California's economy

Why the pressure is on Apple to have a big holiday season

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Apple's stock has been declining. Will the holiday shopping season bring it back?

What’s wrong with Apple? That’s what folks may be asking as the California technology giant’s stock price continues to slide. The company introduces a new iPhone and a new iPad Mini — and sees its shares hammered down by 100 points, from a high of more than $700?

What gives?

Wall Street is getting nervous about Apple’s ability to — essentially — continue printing money with its popular smartphones and tablets. The company reported disappointing earnings last week, the result of having spent a lot to revamp its product lines in time for the holiday season.

Apple also cautioned that it might not make as much money this holiday season — but some analysts think the company may be playing possum, underpromising in order to overdeliver.

Still, competition is heating up in the markets that Apple has owned. Microsoft and Amazon have introduced new tablets to rival the iPad, and Android-powered smartphones continue to gain customers.

Apple is still Apple — even if it’s worth $100 billion less than it was a month ago. But it has some work on the horizon.

Follow Matthew DeBord and the DeBord Report on Twitter. And ask Matt questions at Quora.

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